$McDonald's(MCD)$ shares have been downgraded three times over the past three days. The main reasons include poor response to new menu items, consumer fatigue over rising prices, and the potential for declining demand due to inflation.
Another factor is the widespread use of GLP-1 weight loss drugs$Novo-Nordisk A/S(NVO)$ , which suppress appetite and pose a threat to fast food chains like McDonald’s, as changing consumer habits mean people might simply stop eating there.
In the same round of rating changes,$Domino's Pizza(DPZ)$ received a “sell” rating, $Chipotle Mexican Grill(CMG)$ remained “neutral,” but $Yum(YUM)$ was rated favorably, mainly due to its reasonable valuation and strong international presence.
Honestly, it’s as if eating Pizza Hut or KFC won’t make you gain weight! Maybe I’ll go try it out tomorrow 😂
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